Starbucks’ comeback effort includes some back-to-basics moves, but also some new twists.
The coffee chain will use a mobile order-pacing algorithm and high-tech menus, CEO Brian Niccol said on a conference call Tuesday. Store aesthetics are also under review, as Starbucks (SBUX) tests new types of seating and brings back touches like ceramic mugs and accessible condiment bars.
The “Back to Starbucks” campaign—a nod to analog days announced last quarter—aims to stem declines in sales and traffic while positioning the chain to double its U.S. footprint. Net sales dipped 0.3% year-over-year and same-store sales fell 4% year-over-year in the fiscal first quarter, coming in slightly above analysts’ expectations.
“We believe it’s the fundamental change in strategy we needed to solve our underlying issues, restore confidence in our brand, and return the business to sustainable long-term growth,” Niccol said on the call, according to a transcript made available by AlphaSense. “We’re seeing nice progress.”
The chain’s algorithm is intended to …